If the returns on a stock index can be characterized by a normal distribution with mean 12%,the probability that returns will be lower than 12% over the next period equals:
A)50%
B)25%
C)46%
D)33%
E)70%

Question

Quizplus · Accepted Answer

In a normal distribution, the mean divides the distribution into two equal halves. Therefore, the probability of returns being lower than the mean (12%) is 50%.

If the Returns on a Stock Index Can Be Characterized